India’s legal landscape, much like its cultural fabric, is unique, resilient, and fiercely protective of its traditions. Unlike many other global jurisdictions, foreign law firms are not allowed to set up shop on Indian soil.
However, the modern, globally interconnected economy cannot function in silos, especially when businesses, transactions, and disputes routinely cross borders. The conundrum then emerges: how do Indian law firms tap into international markets and expertise without violating regulatory norms? Enter referral networks and strategic partnerships.
CRACKING THE CODE
Indian law firms have found a clever workaround to access the global legal industry through multiple creative routes. Indian law firms join forces with international referral networks that provide a professional bridge between jurisdictions without violating domestic regulations.
Alliott Global Network (AGN), Lex Mundi, and IR Global are shining examples of this strategy. These networks offer a global consortium of law firms, accountants, and other professional services, enabling Indian law firms to assist their clients with cross-border legal needs. While foreign law firms can’t officially practice in India, Indian law firms can refer work to their counterparts in other countries and, conversely, receive work referred to them by foreign members.
Let’s dive into these networks and how they’re transforming the way Indian law firms operate in the international market.
LEX MUNDI: A POWERHOUSE FOR GLOBAL COLLABORATION
Lex Mundi, one of the largest and most prestigious networks, operates across 125 countries with over 21,000 lawyers. Its member firms are some of the most prominent and independent in their respective jurisdictions. For Indian law firms like Shardul Amarchand Mangaldas being part of this network means access to a treasure trove of expertise and an open pipeline for international referrals.
Clients of Indian firms can easily tap into the best legal minds in the world by leveraging Lex Mundi’s robust infrastructure. This affiliation gives Indian firms a significant competitive edge when working with foreign clients, making them more than just a ‘local expert’—they become a crucial link in a truly global chain.
ALLIOTT GLOBAL NETWORK: CONNECTING THE DOTS
With over 200 member firms in 80 countries, the Alliott Global Network (AGN) facilitates seamless collaboration between Indian law firms and global peers. For instance, an Indian law firm might be called upon to provide local legal support for a multinational client seeking advice on Indian regulatory matters. Through AGN, the firm can also provide its clients with legal services in the U.S., UK, or any other jurisdiction, without the need for a physical presence abroad.
Counselence, Lex Counsel, Solomon and Co. are some key firms associated with AGN in India.
This setup ensures that Indian lawyers can work with international clients and projects, thus maintaining their foothold in global legal matters, all while staying within the boundaries of Indian law.
IR GLOBAL: CROSSING BORDERS AND PROFESSIONS
IR Global stands out due to its cross-professional approach, offering not just legal but also financial and accounting services. Operating in over 155 jurisdictions, the network includes a variety of professionals, providing Indian law firms with a broad spectrum of international expertise. Law firms that are part of IR Global, like India’s ALMT Legal, Singhania and Partners, are well-positioned to handle complex, cross-border transactions by leveraging the network’s resources.
IR Global’s interdisciplinary model creates a more comprehensive service approach. An Indian firm can not only work with international law firms but also coordinate with accountants, tax advisors, and financial consultants from different countries. This broader collaboration model makes it easier to deliver a holistic solution to global clients.
STRATEGIC PARTNERSHIPS
Beyond networks, some Indian law firms go a step further by forming direct, long-term alliances with foreign firms. Take CSL Chambers and Clyde & Co. for instance. While both firms remain distinct entities in their respective jurisdictions, their partnership allows them to handle cross-border legal matters with remarkable fluidity.
For example, a multinational client with business interests in both India and the UK could approach CSL Chambers, which, through its partnership with Clyde & Co., would ensure that their legal needs in both jurisdictions are met with uniform quality and service. This method of cooperation allows both firms to retain their independence while providing top-tier services in multiple countries.
CSL Chambers and Clyde & Co. are by no means the only example. There are several other noteworthy partnerships where Indian firms collaborate with international giants to meet the growing demand for cross-border legal services.
- Dentons paired up with India based Link Legal to establish Dentons Link Legal as a part of Dentons’ global law firm network in India.
- Prior to CSL Chambers, Clyde & Co. was operating in India through Clasis Law. The association fell through in 2018, switching the partnership towards CSL Chambers.
The Big 4 consultancy firms have also had a shot at the legal space in India by forming close associations with law firms, emerging out of their own ex-employees.
KPMG’s close association with Advaita Legal and EY’s association with PDS Legal are prime examples of this, although it is believed that these associations have been cut off due to strict regulatory glances from the BCI. PDS Legal rebranded as Lumiere Partners in 2021 whereas Advaita Legal closed shop in 2018.
While these collaborations are not mergers, they are structured to appear almost seamless to clients. This adds another dimension to the Indian legal market, making it even more competitive globally, while still operating within the ambit of domestic law.
NOT JUST FOR THE BIG PLAYERS
What’s particularly noteworthy about these alliances, referral groups, and strategic partnerships is that they cater not only to top-tier firms but also to boutique, specialized firms. The legal ecosystem thrives on diversity, and smaller, more specialized firms are just as crucial in meeting the niche needs of clients. Advaita Legal and PDS Legal were both boutique specialized newly formed firms that partnered with 2 of the Big 4s in the country.
Similarly, for boutique firms, being a part of networks like Alliott Global Network, Lex Mundi, and IR Global offers significant advantages. These smaller firms often possess deep expertise in specific legal areas, but without the global recognition and reach that larger firms enjoy. By aligning themselves with these global networks, boutique firms can expand their geographical footprint and gain more exposure to international clients who might have otherwise overlooked them.
Take, for instance, a boutique intellectual property law firm in India that joins IR Global. Through this affiliation, the firm can showcase its niche expertise to a worldwide audience and receive cross-border work that leverages its specialized knowledge. This not only boosts the firm’s international reputation but also helps in driving business growth by tapping into a larger, more diverse client base.
For example, an Indian boutique M&A advisory firm might partner with a foreign giant via a network like Lex Mundi to work on a multi-jurisdictional acquisition deal. This partnership allows the boutique firm to demonstrate its expertise in the Indian market, while also contributing to the larger transaction on a global scale.
This dynamic creates a win-win situation: the global networks and partnerships benefit from the targeted expertise of boutique firms, while the boutique firms themselves gain more recognition, a broader outreach, and opportunities for growth they wouldn’t have otherwise enjoyed. These relationships foster a sense of equality in the global legal landscape, allowing firms of all sizes to operate with a level of international clout previously reserved for the biggest players in the field.
THE BEST OF BOTH WORLDS
Both referral networks and strategic partnerships offer unique advantages. Networks like Alliott Global Network, Lex Mundi, and IR Global provide Indian law firms with extensive global reach, ensuring that they can remain competitive on a global stage. On the other hand, direct partnerships with international law firms, such as the CSL Chambers and Clyde & Co. model, offer a more intimate and consistent collaboration, allowing Indian firms to deliver highly coordinated legal services across borders.
However, one might wonder if one model is inherently superior to the other. The answer, quite cleverly, lies in the specific needs of the client. Referral networks offer broader global coverage, making them ideal for firms that want to maintain their independence while still engaging in international work. Strategic partnerships, though narrower in scope, offer a more integrated and cohesive service approach, particularly when dealing with high-stakes cross-border transactions.
A BRAVE NEW LEGAL WORLD
The fact that foreign law firms cannot practice in India may seem like a limitation at first glance, but Indian law firms have turned this obstacle into an opportunity for innovation. Whether through powerful referral networks or strategic alliances with international law firms, India’s legal industry is more globally connected than ever before.
This hybrid approach ensures that Indian law firms not only remain relevant in an increasingly globalized legal market but can also thrive while keeping their identity intact.
